K Bank will move to build an overseas digital asset remittance cooperation network linking South Korean blockchain company BPMG and Hong Kong's HashKey Group. It plans to pursue a proof of concept for blockchain-based remittance technology between South Korea and Hong Kong and prepare internal control systems such as customer identification and anti-money laundering measures in anticipation of institutionalisation and approval by financial authorities.

K Bank said on the 21st it signed a memorandum of understanding with BPMG and Hong Kong's HashKey Group for cooperation in overseas remittances and payments.

The three parties agreed through the pact to cooperate on overseas remittances using blockchain and on digital asset-related businesses.

They will first explore ways to pursue a proof of concept for remittance technology between South Korea and Hong Kong using a blockchain-based overseas remittance model being jointly developed by K Bank and BPMG.

Specific areas of cooperation include building digital asset-based overseas remittance and payment infrastructure, cooperation on technologies and services related to digital asset custody, conversion and settlement, and identifying new business models using digital assets.

The three parties also plan to review ways to expand the service scope to Asia by linking with HashKey Group's remittance network being built for foreigners in Hong Kong and Southeast Asia.

To prepare for a full-scale rollout, they also agreed to build regulatory compliance standards and internal control systems such as know-your-customer and anti-money laundering measures.

K Bank has signed relevant memorandums of understanding this year with Changer.ae Limited in the United Arab Emirates, Thailand's Kasikornbank and blockchain company Ripple. With the agreement with HashKey Group, it plans to expand its cooperation area to Hong Kong and to make its service application model more concrete based on proof of concept work for each partner company.

A K Bank official said, "We expanded the cooperation network to Hong Kong following the United Arab Emirates and Thailand," and added, "We will continue cooperation with financial and blockchain companies in various countries."